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A simplified multilateral tax treaty framework could ease disputes
To ensure there is a consistent application of the arm’s-length principle (ALP), transactions happening between unrelated parties and related parties should be aligned with profit allocation and the international business environment.
This alignment has several advantages, such as creating simpler multilateral tax conventions, having a standardised application of these treaties to specific cases and increasing the chances for single states to agree on a specific multilateral tax treaty because it becomes a matter that goes beyond unilateral interests.
Drafting a simplified multilateral tax treaty model
It is important to consider how a multilateral tax treaty could be simplified with a few initial observations. ....

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